Economies of the Oregon Coast

Businesses, both independent and cooperative along the Oregon Coast contribute to a local, regional, and even international economy. Siting wave energy facilities along the Oregon Coast has the potential to disrupt these businesses.

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Socioeconomic Background of Oregon

Oregon's economic and social charateristics are important factors in any proposed public policy related event. Wave Energy discussions involve many stakeholder groups, who represent a diverse range of interests. Understanding who these stakeholders are and what their values include will help decision makers assess potential socioeconomic factors. Some of the major characteristics include:

• Demographic and economic characteristics of coastal communities
• Commercial and Recreational Fisheries
• Ports and Harbors
• Tourism

Oregon Coastal Communities

The coastal region of Oregon is a rural environment. The economy is still resource based. Although the State of Oregon has many opportunities to transition to a mixed-industry economy (manufacturing, marketing and technology), coastal communities lack the necessary resources, accessibility, and funding to follow the rest of the State. In addition, communities have a unique transient pattern that creates atypical demographics.

Population and Age Demographics

Approximately 210,000 people live full-time on the Oregon coast (U.S. Census Bureau 2006). Population levels are rising, both at the state level and in coastal counties. This trend has been seen over the last thirty years. In particular, Lincoln, coastal Lane, and Curry County have experienced significant population growth, similar to the state’s rate. These coastal regions indicate where pressures and potential future growth exists. The five most populated coastal communities are Coos Bay (15,374 residents), Astoria (9,813), North Bend (9,544), Newport (9,532), and Lincoln City (7,437) (U.S. Census Bureau 2006).

The population distribution in coastal communities differs from the state average. The coastal population is older with a higher retirement (65+ years) cohort than state and national demographics. Additionally, there is a unique migration trend on the coast. Younger residents move outside their coastal communities after graduation and simultaneously, retired individuals are moving to the coast. This creates a skewed age distribution (Davis and Radtke 2006). These two factors influence housing options, employment, and personal income.

Economic Characteristics

While the Oregon coast’s economy is still considered resource dependent, the largest contributors to personal income earnings are: transfers and investments (“retiree effect” according to Davis and Radtke 2006), and unidentified sectors. The top industries for the coast are timber, fishing, and tourism (Bradbury 2001). However, there is some variation in the top industries by county; such as Tillamook County where agriculture is the top industry. In recent years there have been gradual changes in the economy by sector. Natural resource-based jobs, such as commercial fishing and timber jobs, have declined (Davis and Radtke 2006). Tourism-related sectors, such as the trade and service sector, are increasing in importance. Local businesses are extremely important to local economies, as seen with the higher percentage of small-sized firms and self employment.

The coastal region’s economic conditions are poorer than the State averages. Income per capita (average) for the coast is $24,112, some $8,700 less than the State average. The coast also has a higher percentage of its population living below the poverty level. However, both locally and statewide this percentage is declining.

Commercial and Recreational Fisheries

Fishing is an intrinsic part of Oregon’s heritage and economy. Since the early settlement period, Native Americans and pioneers have harvested fish from the Pacific and tributary rivers to provide food and trade. These traditions continue to be an important part of contemporary coastal culture and economy. Commercial and recreational fishing are a source for jobs, income and also a prime tourism attraction. Combined, commercial and recreational salmon fishing contributed $21.3 M, with 37% coming from the recreational sector (Radtke 2005).

Commercial Fisheries

The commercial fishing industry involves the harvest, process and distribution of captured fish (both fin- and shellfish). This industry provides coastal residents with 9,368 jobs. In 2003, the industry contributed $264 million (M) to coastal communities in total personal income from both landings and distant waters. In addition, another $29 M benefited Oregon residents outside the coastal region (Davis and Radtke 2006). The fishing industry also brought $14 M to the state from Oregon Income Tax.

The fishing industry has changed over the years. It has shifted from low-volume, high-value species (e.g. salmon and tuna) to high-volume, low-value species (e.g. whiting and sardines) (Langdon-Pollock 2004). Although the number of vessels has declined, the average vessel revenue has increased (Radtke 2003). These changes in the commercial fisheries industry are attributed to several factors. Some harvested species are considered “overfished” and restrictions have been placed on the fisheries by management agencies. In some instances, the industry has had to change its gear or targeted species. For some fleets, vessels have not been able to adapt to the management requirements. In 1991, fish processors began handling Pacific whiting in response to the salmon declines. That species has become a large contributor to fishery landings, even thought it is a low-value fish. Unlike whiting, other species of groundfish have declined since the 1980s. These groundfish declines are not documented at all Oregon ports, however. Port Orford have had stable groundfish landings (Langdon-Pollock 2004).

Recreational Fisheries

Recreational fishing is also an important economic driver for the Oregon coast. This sector is divided into salmon and non-salmon, and ocean and lower estuary. Their economic significance varies. In 2005, marine recreational fishing contributed $31.9 M with non-salmon, estuary fishing comprise one-third of that total (Radtke 2005). In terms of fishing angler days, ocean salmon fishing estimated 145.7 days in 2004. That type of recreational fishing is most important to the Newport Port, which supported most of those trips. For ocean, non-salmon fishing, there were approximately 64.9 thousand fishing days that same year. The Lower Columbia River is an especially important area for lower-estuary fishing. It generated $3.7 million in 2005 (Radtke 2005).

Ports and Harbors

There are a total of fifteen ports and harbors on the Oregon coast. Eight of these ports support commercial fishing vessels. Astoria, Newport, and Coos Bay are the three major ports. In total personal revenue, coastal ports and harbors generated $246.7 M (Radtke 2003). Distant water fleets are also important to ports. They contributed 33.9% of the total economic gain in 2001 and $95 million in 2004.

Tourism

Tourism is an important economic contributor to coastal economies through visitor spending on food, lodging, recreation, attractions, and guest services. Tourism’s contribution to the coastal economy is increasing (Davis and Radtke 2006). It generated $514.4 M for coastal communities in 2004. However, tourism only makes up 4.6% of the coast’s total revenue. Statewide, travel spending has increased over the last two decades and for most coastal counties this increase has been higher than the state average.

Tourism is one of the six major industries defined for coastal economies. This sector provides residents with 10,800 jobs (Davis and Radtke 2006). In comparison to the State, the tourism industry provides a higher percentage of jobs in all coastal counties, except Lane. The highest tourism-related employment is in Clatsop and Lincoln County, which are the regions closest to metropolitan areas. Although tourism provides coastal residents with jobs, a large proportion of these jobs do not pay wages sufficient to support a household (Davis and Radtke 2006).

Recreational use

Oregon draws passive and non-passive recreational users. These travelers are residents and non-residents to Oregon. Visitors to coastal Oregon estuaries tend to be residents or neighboring Washington residents and they tend to visit these areas more than once (Huppert et al. 2000). In 2002, 73% survey respondents indicated they participate in outdoor recreational activities at least once a year (Rooney 2003). The popularity of passive versus non-passive recreation appears to vary by region. Passive recreational activities, such as sightseeing, wildlife observation, and photography, are preferred on the North Coast, whereas non-passive activities are more sought after on the South Coast.

According to interviews conducted in 1999, visitors traveled to the coast, on average, ten times during the summer. The coast attracts both day-use and overnight travelers. Important factors that influence visitors’ decisions to travel to the Oregon coast include: “good crabbing,” “good fishing,” “good views,” and “no motor vehicles on the beach” (Huppert et al. 2000). Oregon’s public beach access is an important asset that appeals to visitors (Rooney 2003). The North Coast’s popular scenic attractions and accessibility are two factors that influence passive usage, such as sightseeing. Management restrictions and loss of access can impact recreational usage as seen on the South Coast when tour boat trips were restricted on the Rogue River.

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